Fixed Annuities: Suitable?
Tax-deferred retirement contracts issued by insurance carriers that pay a guaranteed interest rate (for a certain period) declared by the carrier.
Fixed annuities generally have surrender charges and often have market value adjustments on early withdrawals.
They are generally suitable for long-term (+10 years), conservative investors who do not want to take market risk. The interest rates on fixed annuities are very low.
Higher net worth clients and those seeking higher returns may not be suitable candidates for a fixed annuity.